Interest rates are going down for an extended period. How long are you expecting it to last?
The home loan interest rates have been moving southwards in the last few months. Just 18 months back home loan interest rates were hovering on 8 per cent. The adoption of EBR as the benchmark for interest rates has led to a significant dip in interest rates of around 60 bps.
The present low levels of interest reflect the liquidity overhang in the economy on account of various measures taken by the government to help the economy sustain in challenging times. The lower interest rates have, in fact, helped in driving the housing loan business in metros as well as other centres. I believe that the lower interest rate regime would continue for some more time.
The attractive rate of interest and the freebies from the developers have boosted the sentiment in the real estate market and consequently the home loan portfolio of lenders including SBI.
Do you think the decline in interest rates will have a positive impact on the real estate sector?
Since the decision to invest in a residential home is a major financial decision taken once in a lifetime, the interest rate plays a pivotal role as it is a long-term liability for individuals. The home loan segment has a 25 to 30-year repayment commitment, a small cut in interest rates results in substantial savings over the life of the loan. The reduction of interest rates in the recent past, therefore, has changed the market dynamics in favour of prospective homeowners.
Continue reading your story on the app
Continue reading your story in the magazine
‘The Future for Facilitators is Advisory'
Deven Choksey is the name which scripted the rise of stock brokerage business into the wealth management practice in India. The promoter of KR Choksey Group and the managing director of the KR Choksey Shares and Securities Private Limited has spent over three decades in the Indian capital market. In an interaction with Jyotika Sood, Choksey talks about the changing financial landscape of the country and the role of facilitators in this evolving financial ecosystem. Excerpts from the interview:
Borrowing Against the Blues
Both gold loan and loan against property have their unique features and drawbacks but if you need the funds for an urgent medical emergency, the balance tilts in favour of gold loan
Covered, Yet Battered
Rejection of insurance claims is a regular affair in the field of medical insurance, health insurance and motor insurance. Rejection by the insurer is not the end of the world. You have the right to fight for your claim
Home loan interest rates are at historical lows. Extended tax sops from the government, and favourable fiscal policies make it the right time to invest in real estate. It’s a win-win for both the buyer and the developer.
Mr Financial Fixit Fixing Finance Lives
Agents, distributors, brokers, or a little upscale, wealth managers or financial advisors. Call them by whatever name, they can unmake and remake your future with financial security.
Driving out of Darkness
A prolonged slowdown in the industry drove all segments of the auto sector into record lows but the industry shows amazing resilience to steer out of the woes and hits the fast lane.
Beyond the Raging Waves
Most investment options look foggy with the markets reeling under the second wave of Covid-19 pandemic. Experts suggest restraint and measured steps for investors, but push them for building an emergency fund with at least three months’ salary
Cover Crumbles On Fake Comorbidity Papers
Giving fake comorbidity certificates in the race for Covid vaccine is as risky as hiding pre-existing diseases and eventually being denied cover
Settle Your Scores With Broke Brokers
Investor grievance redressal gathers importance with more and more brokers defaulting. Sebi launches an online complaint filing and tracking facility for the ease of investing in the market.
Wage Redefined, Pay Reduced
Introduction of the new wage code from April 1 is likely to affect take-home salary for employees across public and private sectors but ensure a better retirement package
FLUFFY'S SNO-BALLS SHOP
LONG BEACH’S SNO-LOSOPHY
EIGHT WAYS TO REACH A HEALTH BLOOD PRESSURE
To take care of your heart, it’s important to know and track your blood pressure. Millions of Americans have high blood pressure, also called hypertension, but many don’t realize it or aren’t keeping it at a healthy level.
A year of COVID
MY OH MY, HOW THINGS HAVE CHANGED
THE PANDEMIC WILL MAKE KIDS OR BREAK THEM
THE COVID-19 ERA has worked as a stress test for parents and kids alike, breaking some while bringing out reserves of strength and resilience in others.
Have Vaccine, Will Travel
COVID-19 immunization may play a major role as we strive to return to travel.
Reincarnation And Realpolitik
China, India, and the U.S. are vying to influence the selection of the next Dalai Lama
Your Facebook Friend Has Some Thoughts To Share About Your Covid Vaccine
Mark Zuckerberg wanted to make Facebook a source of reliable information about the pandemic. Instead he created a perfect platform for conspiracy theorists
A Squeeze on the Global Middle Class
An estimated 150 million people slipped down the economic ladder in 2020, the first setback in almost three decades
Unlocking the Mysteries of Long COVID
A growing g number of clinicians are on an urgent quest to find treatments for a frighteningly pervasive problem. They’ve had surprising early success.
An Exclusive Interview With Nandakumar Narasimhan
The Little Red Train